Canadian Mining Journal


PDAC 2016: Canadian bankers ponder future of mining finance

Debt, balance sheet repair and the availability of financing were the main themes of a panel discussion on capital markets at the Prospectors and Developers Association of Canada convention.

Since the early 2000s, the top twenty gold companies have seen their collective debt balloon from about $6 billion to nearly $40 billion. And that debt burden doesn’t take into account leverage across the base metal sector.

Debt “is probably going to kill a few companies this time around, or at least take a few appendages,” Egizio Bianchini, co-head of the global metals and mining group at BMO Capital Markets, told a standing room only crowd at the world’s largest mining convention.

“That $50-60 billion in debt needs to be dealt with, or else companies by 2019 or 2020 will have gone bankrupt,” he said. “It doesn’t take a rocket scientist to figure it out, just look at the debt repayment schedules. It’s going to be an

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